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Managed Fund Since 2018
Fixed Income
FKBAX Franklin Total Return Fund
- Diversification. Broad diversification makes our fund attractive as a core fixed-income holding.
- Global Fixed Income Expertise. Investors have full access to the research resources of the Franklin Templeton Fixed Income Group®.
- Experienced Portfolio Management Team. Tenured investment team with expertise across market cycles.
Popular Documents
Overview
Fund Facts
Fund description
The fund seeks to provide high current income consistent with preservation of capital. Capital appreciation over the long term is a secondary goal. The fund primarily invests in debt securities, which may be represented by derivatives that provide exposure to debt securities. The fund focuses on government and corporate debt securities and mortgage- and asset-backed securities.
- Benchmark
- Bloomberg US Aggregate Index
- Dividend Frequency, if any
- Monthly
- Fund Inception Date
- 08/03/1998
- Distribution Rate at NAV
3 As of 11/13/2025 (Updated Daily) - 4.68%
- Effective Duration
As of 10/31/2025 (Updated Monthly) - 6.03 Years
Identifiers
- Ticker
- FKBAX
- Fund Number
- 460
- CUSIP Code
- 353612856
Average Annual Total Returns As of 10/31/2025
Class A
- 2.05%1 Year
- 4.61%3 Years
- -0.85%5 Years
- 1.20%10 Years
- 3.74%Since Inception
08/03/1998
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Sectors
As of 10/31/2025 - Notional Exposure % of Total (Updated Monthly)
Additional Fund Info
- Share Class Inception Date
- 08/03/1998
- Investment Style
- Multi-Sector
- Lipper Classification
- Core Plus Bond Funds
- Morningstar Category
- Intermediate Core-Plus Bond
Manager and Commentary
About the Team
Franklin Templeton Fixed Income
Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.
Commentary Highlights
June 30, 2025- Markets: There were large swings in financial market sentiment across the second quarter of 2025. Fixed income spreads generally widened in April amid US President Donald Trump’s “Liberation Day” tariff announcements. A subsequent 90-day pause for most of the increased levies and the passage of the “One Big Beautiful Bill” spending package after quarter-end helped reduce fixed income market uncertainties.
- Contributors: Exposure to high-yield (HY) corporate and overweight allocations to investment-grade (IG) corporate bonds, senior secured floating-rate bank loans and collateralized loan obligations (CLOs). Overweight allocations to agency mortgage-backed securities (MBS), non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities. US duration positioning.
- Detractors: Security selection in IG corporate bonds.
- Outlook: In our view, the US Federal Reserve (Fed) is unlikely to cut interest rates soon. Despite recent signs of cooling inflation, Fed officials remain cautious due to ongoing tariff-related uncertainties. We expect longer-term rates to continue to climb higher through the rest of the year.
Franklin Templeton Fixed Income
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Managed Fund Since 2024
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Managed Fund Since 2019
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Managed Fund Since 2023
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Managed Fund Since 2019
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Managed Fund Since 2025
Latest Insights
November 12, 2025
October 30, 2025
October 28, 2025
October 9, 2025
Performance
Risk Measures
As of 10/31/2025
Class A - Without Sales Charge (NAV)
Measured against: Bloomberg US Aggregate Index
Statistics
Historical Tracking Error
Information Ratio
Standard Deviation (%)
Class A
Bloomberg US Aggregate Index
Sharpe Ratio (%)
Class A
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 11
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio
Assets
As of10/31/2025 (Updated Monthly)
- Total Net Assets
- $3.01 Billion
Positions
As of 10/31/2025 (Updated Monthly)
Number of Holdings
- Fund
- 978
- Benchmark
- 13,899
Portfolio Statistics
As of 10/31/2025 (Updated Monthly)
Effective Duration
- Fund
- 6.03 Years
- Benchmark
- 5.98 Years
- Fund
- 8.11 Years
- Benchmark
- 8.15 Years
Sector Exposure
As of 10/31/2025 - Notional Exposure % of Total (Updated Monthly)
| Sector | % of Total | Benchmark |
|---|---|---|
Investment Grade Corporates | 37.75% | 23.24% |
Agency Mortgage-Backed Securities | 30.91% | 24.30% |
U.S. Treasuries | 15.46% | 45.27% |
Interest Rate Derivatives | 8.89% | — |
Collateralized Loan Obligation | 8.57% | — |
Residential Mortgage-Backed Securities | 5.49% | — |
High Yield Corporates | 5.02% | 0.00% |
Commercial Mortgage Backed Securities | 3.87% | 1.41% |
Bank Loans | 2.50% | — |
Municipal Bonds | 2.42% | 0.46% |
Non-Local Currency Emerging Market Bonds | 1.90% | 0.84% |
Asset-Backed Securities | 0.52% | 0.37% |
U.S. Agency | 0.25% | 0.47% |
Marketplace Loans | 0.13% | — |
Other | 0.11% | 1.30% |
Non-US Developed Bonds | 0.11% | 2.33% |
Currency Derivatives | 0.00% | — |
Local Currency Emerging Market Bonds | 0.00% | — |
Cash & Cash Equivalents | -13.90% | — |
Holdings
As of 09/30/2025 (Updated Monthly)
Fannie Mae Or Freddie Mac 5.5% 10/01/2055 FHLM
Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO
Fannie Mae Or Freddie Mac 5% 10/01/2055 FHLM
United States Treasury Note/Bond 3.875% 11/30/2027
GOVT NATL MORTG ASSN 6% 10/01/2055 GNMA
Freddie Mac Pool 2% 04/01/2052 FHLM
Fannie Mae Or Freddie Mac 6% 10/01/2055 FHLM
United States Treasury Note/Bond 1.875% 11/15/2051
United States Treasury Note/Bond 2.25% 08/15/2049
Freddie Mac Pool 3% 02/01/2052 FHLM
Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.
Distributions & Tax
- Distribution Frequency
- MonthlyThis fund is an Accrual fund.
- Capital Gain Distributions
- December
Rates and Yields
Distribution Rate & Breakpoints
Less than $100,000 4.50%
$100,000 - $249,999 4.53%
$250,000 - $499,999 4.58%
Distribution Rate
At Net Asset Value (NAV)
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
12/30/2025
10/31/2025
09/30/2025
08/29/2025
07/31/2025
06/30/2025
05/30/2025
04/30/2025
03/31/2025
02/28/2025
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
Pricing
Pricing History
As of 11/14/2025 (Updated Daily)
Daily Fund Prices and Breakpoints
As of 11/14/2025
Share Prices
As of 11/14/2025
POP and Sales Charge at Breakpoints
Less than $100,000
$100,000 - $249,999
$250,000 - $499,999
52-Week Range
- Highest NAV
As of 10/28/2025 - $8.51
- Lowest NAV
As of 01/13/2025 - $8.11
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Franklin Total Return Fund | |||
| Product Commentary - Franklin Total Return Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Franklin Total Return Fund - Class A | |||
| Annual Financial Statements and Other Information - Franklin Investors Securities Trust #2 | |||
| Semi-Annual Report - Franklin Total Return Fund Class A | |||
| Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust | |||
| Prospectus - Franklin Investors Securities Trust #2 | |||
| Summary Prospectus - Franklin Total Return Fund | |||
| Statement of Additional Information - Franklin Investors Securities Trust #2 | |||
| Fiscal Q1 Holdings - Franklin Investors Securities Trust Funds | |||
| Fiscal Q3 Holdings - Franklin Investors Securities Trust Funds |
Risks
All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.
Important Information
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
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Important data provider notices and terms available at www.franklintempletondatasources.com.
Performance data quoted represents past performance, which does not guarantee future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The Bloomberg US Aggregate Index is comprised of investment-grade, U.S. dollar-denominated government, corporate, and mortgage- and asset-backed issues having at least one year to maturity.
Source: Bloomberg Indices.
U.S. government-sponsored entities, such as Fannie Mae and Freddie Mac, may be chartered by acts of Congress; their securities are neither issued nor guaranteed by the U.S. government. Although the U.S. government has recently provided financial support to Fannie Mae and Freddie Mac, no assurance can be given that the U.S. government will always do so.
Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.